The ‘Issued documents’ in DigiLocker are deemed to be at par with originals as per Section 9 A of Information Technology Act, 2000.
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SEBI implemented several measures which includes stipulation of norms for inactive /dormant accounts and folios, mandating furnishing of contact and bank details by investors, mandating investors to either provide nomination or expressly opt-out from making a nomination, simplification of norms for transmission, and centralized mechanism for reporting demise of investor.
DigiLocker also provides nomination facilities to its users. The nominee/s specified by the user is/are authorised to access the digital information of the user upon the demise of the user. In the event of a user’s demise, appointed nominees will receive read-only access to essential financial details.
The digilocker nominee after authentication of the identity can access the digital information. The nomination mechanism in DigiLocker does not alter the norms governing transmission for the mutual funds or demat accounts.
In directions to securities market intermediaries, all AMCs (and their RTAs) and recognised depositories are directed to register with DigiLocker as ‘Issuer’ so as to enable users / investors, at their own option, to fetch their holding statement, as of the date immediately preceding the date of fetching, or transaction statements for the last 30 days of mutual fund units and demat accounts, respectively, in user’s DigiLocker account.
DigiLocker system shall also provide the user the option to fetch CAS automatically on the 1st of January each year.
As an advisory to investors, Sebi in the circular said that investors may consider becoming users of DigiLocker and also consider specifying nominee/s for the DigiLocker (over and above the nomination/s, if any, made in their demat account and MF folio).
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In case of the demise of the user, the DigiLocker Nominee/s will be notified by the DigiLocker. The DigiLocker Nominee/s can then access the DigiLocker account of the deceased user, after authentication of identity and can view the documents fetched therein by the user
The DigiLocker Nominee herself can initiate the transmission of deceased investor’s financial assets, if she is also the nominee in the account / folio of the investor. Otherwise, it is envisaged that the DigiLocker Nominee/s will pass on the information in the holding statement of MF units and demat account to the surviving joint holder or nominee of the account / folio or the legal heir of investor, as the case may be; thus facilitating them to initiate transmission.
This mechanism can prevent the DigiLocker user’s investment in financial assets from becoming unidentified UA, if their holding statements were fetched (downloaded) in the DigiLocker account.
Digilocker
DigiLocker is a digital document wallet of the Government of India (GoI), facilitating citizens in obtaining and storing documents like Aadhaar, PAN, Driving Licence, Death Certificate, etc. ‘Issued documents’ in DigiLocker are deemed to be at par with originals.